The temporary restraining order preventing President Joe Biden from forgiving student loan debt for over 25 million Americans will expire after a federal judge delivered a loss to the Republican-led effort to stop the plan.
Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio filed a lawsuit against the aid package that includes debt cancellation for millions of dollars worth of student loans, arguing that the attempt is illegal and would harm student loan providers.
However, U.S. District Judge Randal Hall in Georgia ruled on Wednesday that the state lacked the standing to sue against the plan and therefore could not serve as the venue for the lawsuit. The judge ruled that the case should be transferred to Missouri since the suit claims that the plan would harm the Missouri Higher Education Loan Authority.
"Based on Plaintiffs' reliance on MOHELA as its primary basis for standing, the Court finds the most equitable transfer would be to the United States District Court for the Eastern District of Missouri," Hall wrote in his decision.
A spokesperson for the Department of Education hit out at Republicans following the ruling in a statement to CNBC.
"The fact remains that this lawsuit reflects an ongoing effort by Republican elected officials who want to prevent millions of their own constituents from getting breathing room on their student loans," the spokesperson said.